Report on Managing and Running a Small Business for Ensoft Ltd

This report analyzes the operations of Ensoft Ltd, a small-scale business providing networking and software technologies. It covers crucial aspects of managing a small business, including goal setting, financial resource management, and employee skill analysis. The report delves into customer relationship management processes, such as analyzing customer value and building long-term relationships, as well as the benefits and drawbacks of transnational business development. It also includes financial analyses, such as monthly cash flow forecasts, break-even analysis, and financial statements, while considering the implications of relevant legislation and regulations on small businesses. The report provides a comprehensive overview of the key elements involved in successfully managing and running a small business like Ensoft Ltd.

MANAGING AND RUNNING
A SMALL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations a small business or social enterprise needs......................................1
M1 Apply relevant tools and techniques in a structured and analytical way to plan and allocate
resources in an organisational context....................................................................................2
M2 Assess the importance of planning and allocating resources to achieve the business
objectives................................................................................................................................2
D1 Critically analyse the application of appropriate resources to demonstrate links between
resource allocation and achievement of business objectives..................................................3
TASK 2............................................................................................................................................3
P2 Various processes of customer relationship management.................................................3
P3 Small business can develop transnationally and benefits and drawbacks.........................5
M3 Apply and evaluate the elements of the customer relationship management process in
relation to achieving business objectives...............................................................................7
M4 Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges .................................................7
D2 Critically evaluate the customer relationship management process at all stages and provide
recommendations for overcoming challenges of developing transnational operations. .......7
TASK 3............................................................................................................................................8
P4 Annual itemised monthly cash flow forecast showing fixed and variable costs...............8
P5 Break- even analysis........................................................................................................10
P6 Financial statements for an organisation.........................................................................11
M5 Apply appropriate quantitative and analytical techniques to provide an appropriately
detailed cash flow forecast and break-even analysis............................................................12
D3 Produce an accurate cash flow forecast and break-even analysis with a critical evaluation
of how key financial statements contribute to the successful management of the business.12
TASK 4..........................................................................................................................................12
P7 Legislation and regulations that have implications on small businesses........................12

M6 Evaluate the implications of key legislation and regulations in an organisational context
..............................................................................................................................................13
D4 Critically evaluate key legislation and regulations that affect small businesses or social
enterprise organisations, taking future developments and changes into account.................13
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
In an economy, each and every business organisation provide their contribution in
development procedure. Small scale enterprises use different kind of strategy for managing their
business activities in effective manner (Ali and Babiker, 2017). For this, they are required to
analyse their employee's skills and working capacity so as to allocate different responsibilities to
them properly. Managing and running in a small business is not an easy task because for this
higher authority needs to use impactful strategy to build their own marketing share easily.
Management of these organisations requires to study their employee performance on timely
bases to maximise firm's productivity easily. This report is based on Ensoft Ltd. which is a small
scale business organisation. This firm was established in the year of 1997 and provides their
effective services in networking and software technologies. This project represents small
business or social enterprise needs, processes of customer relationship management as well as
benefits and drawbacks of small business development. At last, it will also determine monthly
cash flow forecast showing fixed and variable costs, Break- even analysis, financial statements
for an organisation and legislation and regulations that have implications on small businesses.
TASK 1
P1 Main considerations a small business or social enterprise needs
For a business organisation, it is necessary to examine different kind of elements that
influence in future growth. Small scale organisations have limited resources that are requires to
utilize properly to getting maximum profitability. Ensoft limited is a small scale enterprise that
provide networking and technological services to their customers (Bridge and O'Neill, 2012). For
them, it is requiring to manage their operational and functional activity properly to getting
desired outcomes. These business firms require to analyse their future need as -
Create Goals and objectives – Manager of Ensoft Ltd. Require to create organisational
goals and objective effectively that helps to provide desired success easily. This is a one most
important procedure in which higher authorities analyse their funds and resources that to
maximise organisational share in target market. These business activities and approaches helps to
motivate employees toward future targets to achieve them in exact manner. Introducing
organisation's goals and objective is most important procedure in a firm.
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Managing Financial resources – These kind of activities help to manage organisation's
capital and fund properly so as to utilize them in appropriate manner. These approaches has a
major impact on small scale organisation because they require to analyse several sources for
getting appropriate fund to managing business activities in effective manner. In this process
banks, financial institutions and stakeholder provide their own contribution for managing
appropriate fund for organisation.
Analyse Staff members and their skills – Management of Ensoft requires to analyse
their employee’s skills and their working performance to allocate appropriate responsibilities to
them. Through this, they can easily maximise organisation's productivity and future growth as
well. After analysing these skill, they can provide proper and impactful training to them as per
the basis of organisation's requirement and need (Burns, 2016). Through this, manager of Ensoft
can easily enhance interpersonal skills of their employees and their working capacity also.
Analyse resources and funds – In a small scale organisation, numbers of resources and
funds can be consistently low so for this; employee of organisation is required to utilize them in
appropriate manner to getting maximum satisfaction. Through this, they can easily maximise
organisation's marketing values and goodwill.
M1 Apply relevant tools and techniques in a structured and analytical way to plan and allocate
resources in an organisational context
For a small scale organisation, it is required to manage tool and resources in appropriate
way to getting desired outcomes easily. All these business approaches aid to provide higher
success and growth. In this procedure, management of Ensoft require to manage their operational
and functional activities properly to enhance firms marketing values. For this, firm requires to
use work break down structure to divide several task to their employees as per the bases of their
skills and capacity. Person oriented training techniques of Ensoft Ltd can also maximise their
employee’s productivity and interpersonal skill to face several challenges easily.
M2 Assess the importance of planning and allocating resources to achieve the business
objectives
Ensoft Ltd is small scale enterprise in which management staff and manager require to
create impactful strategy that helps to allocating resources properly. All these activities help to
maximise firm's growth and income (Chauma, 2017). For a small scale organisation, it is
important to utilize their resources and funds properly to create positive image in front of target
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audience. For this they can use appropriate planning process for implementing effectiveness in
business approaches. Before allocating resources and responsibilities to employees, firm requires
to analyse their skills and ability to perform effectively in each situation. Through this firm can
easily face different challenges that provide several opportunities to them.
D1 Critically analyse the application of appropriate resources to demonstrate links between
resource allocation and achievement of business objectives
According to Cojoacă, (2017) availability of resources include three different steps as
what are the available resources, when they can available for firm and different condition of
availability. For this firm require to analyse it utilization process that should have to be impactful
and strategic. Ensoft Ltd is a small scale organisation and for them it is require to analyse
strength of their employees to allocate appropriate resources to them. For this firm can use
several elements as financial planning, forecasting method, external orientation planning and
strategic management procedure that helps to maximise firm's growth and income as well.
TASK 2
P2 Various processes of customer relationship management
In a business organisation, customers are play a most important role who are known as
their key strength. For this employee of organisation requires to build effective and positive
relation with them to getting long term benefits easily. Customers relation management is an
organisational process that drives to earn maximum profitability on the bases of their demand
and need as well. For this employees of Ensoft requires to understand their expectation to
provide them quality services appropriately. There is process of customer’s relationship
management is given below -
Analyse customers value – For employees of Ensoft Ltd, it is requiring to understand
values of customers and their requirement to provide effective and quality services to them
easily. Customers are the last buyer of products who helps to maximise firm's growth and sale
through their purchasing skill (Drucker, 2012). This procedure helps to attain future objectives
and targets for CRM procedure. Ensoft Ltd is small scale organisation and for them it is require
to analyse values and effectiveness of their customers to maximise their sales and revenues as
well.
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Execution of effective communication channels – In a business organisation effective
and impactful communication play most important role to build strong relationship with target
customers easily. Through this employee can also understand issues and problems of customers
and provide them appropriate solution. For this management of Ensoft Ltd requires to analyse
their employee’s communication skill to enhance them through effective method and strategy.
These kind of organisational approaches aid to maximise sales, customer's and brand loyalty to
getting long term benefits.
Build long term relations – For a small scale organisation, it can be beneficial if they
focusing to build long term relation with target customers. These kind of strategy can be
beneficial for them to getting higher benefits through effective relationship with target audience.
For this they require to use appropriate cost effective methods and approaches to capture
customers eye positively toward their services (Durst and Runar Edvardsson, 2012). All these
activities maximise customer’s values Ensoft Ltd to maximise their growth and sales as well. For
create long term relation with audience, organisation required to provide them quality products
and services as per the bases of their demand and need as well.
Customers life cycle management – This process helps to analyse firm's potential
customers who believe in their products and services. Through this firm can easily maximise
firm's marketing structure by providing quality services to other and new customer to build
effective and impactful relation with them. In this process small scale organisation as Ensoft Ltd
requires to analyse market and customer's demand to provide them exact services. All these
business activities help to provide long term benefits to business through effective and managing
strategy.
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Illustration 1: INTRODUCTION TO THE CRM PROJECT
(Source:- MARTIN, 2015)
From the above diagram, it has been analysed that CRM model is surrounded by various
elements such as; customer care, documentation, public relations, effective communication,
maintain consumer loyalty and so on. It shows that, this framework is highly effective for
company success and aids in creating long term relations with entire society. As a result,
company get succeeded in establishing their positive goodwill at marketplace by maintaining
positive relations with consumers.
P3 Small business can develop transnationally and benefits and drawbacks
This process basically uses to analyse firm’s potential growth to expend their business
structure in different country. Transnationally term basically uses when a firm starts their
business activities in other country to maximise their sales and growth as well. Ensoft Ltd is a
small business organisation and for them it can be beneficial if they start dealing in other
countries (Durst and Wilhelm, 2012). For this firm requires to make impactful strategy to
implement such process in their business process positively. This process basically uses to move
beyond the national boundaries to maximise firms’ growth and income effectively. This process
considers different benefits and drawbacks as -
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Benefits-
 Efficiency- This procedure helps to increase efficiency of employee to dealing in other
countries with impactful strategy. These kind of business procedure helps to maximise
organisation's effectiveness through several business procedures. To implement these
activities in business, management of Ensoft requires to provide effective training to their
employees for enhance their efficiency level easily.
 Independence- A small scale organisation always being depends on further financial
institutions and their stakeholder. Through transnationally process, a firm can provide
their effective services independently in further countries. These kind of business
approaches helps to maximise their profit level and growth as well.
 Lifestyle – All these business activities maximise lifestyle of customers by providing
effective and quality services to them as per the bases of their demand and need as well.
This is not only beneficial for customer but also for employee of organisation who wants
to enhance their skills and lifestyle as well (Hammer, 2015). Ensoft Ltd is is a small scale
business organisation that provides their effective services in networking and software
technologies. Through this process they can easily expand organisational approach by
providing satisfy services to their target customers.
Drawbacks -
 Long process – Transnationally is a long process that include several type of business
approaches. For this, Ensoft requires to analyse their target market where they want to
provider their effective services. After analysing target market, they need to examine
customers demand and requirement for their own services. In this process they require to
build strong strategy and plans to implement their business procedure in those places
easily. After all these process they require to analyse business activities and customer’s
satisfaction level. So this a long process in which Ensoft requires to spend appropriate
fund, time or employee services.
 Financial risk- For this process, a small scale organisation requires to collect appropriate
fund and capital to spend their effective services easily. This business approach does not
provide surety to cover all these funds back in future (Harmon, 2015). So it can consider
financial risk for Ensoft Ltd.
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M3 Apply and evaluate the elements of the customer relationship management process in
relation to achieving business objectives
For a business organisation, it is requiring to use customer’s relationship management
process to getting higher benefits. In this process employees of organisation require to
understand customers demand and need to provide them quality services easily. Ensoft Ltd is a
small scale organisation and for them it is require to build strong relation with their service user
to getting long terms benefits easily. This is a large process that include -
 Analyse customers demand and requirement
 Build effective communication with them
 Understand their issues and problems
 Customers life cycle management
 Getting long term benefits
M4 Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges
In a business organisation, it is requiring to analyse their future objectives and goals that
are requires to achieve on exact time period. For this management of Ensoft requires to analyse
their customer’s skills and working approaches to provide exact responsibilities to them easily.
Transactional operation is a business approach in which an organisation starts their working
approach by move beyond the national boundaries to maximise firm’s growth and income
effectively. Through this they can easily operate their international services for target customers
and services users as well. For this firm require to make effective strategy and plans to
implement these kind of approaches in their organisational activities as well.
D2 Critically evaluate the customer relationship management process at all stages and provide
recommendations for overcoming challenges of developing transnational operations.
As per the words of Jasra and et. al., (2012) Customers are the last buyer of products and
services. For them firm requires to build effective and impactful strategy to getting proper
information about their demand and need as well. For this employees of Ensoft requires to
understand customer’s issues and problems to resolve them through their effective services. This
is an appropriate process that include several elements as -
 Examine consumer’s values
 Uses proper communication channel
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 Create appropriate relation
 Understand customer’s issues
 Provide them effective services and solutions
All these process of customer relationship management helps to maximise organisation's
growth for getting long term benefits easily.
TASK 3
P4 Annual itemised monthly cash flow forecast showing fixed and variable costs
For a business organisation it is require to manage their monthly cash flow statements
that showing fixed and variable cost of organisation.
Balance Sheet, P&L and cash flow statement of Ensoft Ltd organisations:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
Working capital 30 80
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Profit and Loss Account at the year ended
2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 25000 32250 31750 29750 26750
Budgeted cash receipts 12400 1600 1100 1000 15000
Total cash available 37400 34850 32850 29850 28250
Cash distributed
Direct material 1400 1150 1150 1300 1500
Direct labour 1200 650 650 650 650
Overhead 900 600 600 600 600
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